Tuesday, September 20, 2011

4 Tips for Buying a Second Home on Deep Creek Lake!

Last week we talked about why now is really a great time to buy a home on Deep Creek Lake.  With great homes on the Deep Creek Lake Real Estate market, low interest rates and historically low home prices; buying now seems ideal!  If you’re buying a permanent residence on Deep Creek Lake, whether for retirement or your desire to enjoy life on Maryland’s largest fresh water lake; we encourage you to jump right in!  
But, what about those of you who are considering buying a second home on Deep Creek Lake?  As the Coldwell Banker Deep Creek Realty team, we want to give you the best advice possible and help you determine if buying a second home is right for you.  It can be easy to get caught up in the ideals of being in a buyers market, but having a second mortgage is something to really consider.  Whether you’re buying the home as a financial investment, a vacation getaway or a pre-retirement home; you’ll want to take a quick look at these four helpful tips!
1.  Decide if it’s the right time to buy- We know it’s a buyer’s market, but you’ll still want to look carefully at your purpose for buying and also determine your finances.  Is this home a long term property you’ll want to keep for years to come?  Is this solely going to be used as a rental property? Is this something you can afford right now?
2.  Know what to look for in a second home- Before buying, make sure you get a good feel for the area and even the talk with the locals.  Find out if Deep Creek Lake is a good fit for you!  (We’re pretty sure you’ll love it, but it’s always good to double check!) It’s also good to look at the comparable homes around Deep Creek Lake.  We can show you if the Deep Creek Lake home you have your eye on is comparable to other homes around Deep Creek Lake. 
3.  Explore financing options- Buying a second home has the same type of financing and the typical 20% to 25% down or more is required.
4.  Learn the tax ins and outs- Savvy tax planning can make a difference in your return on the property. Tax implications for second homes can vary significantly based on your financial situation and whether or not you plan to rent out the property.   Generally, the interest on the mortgage of your second home is tax deductible, and rental properties are subject to additional tax breaks. Keep in mind that renting your home seasonally varies due to lake levels, economy and demand. We recommend that if you do plan on renting you consider rental income a bonus and if you have to rent to make the numbers work then you may reconsider the purchase. You do not want to get yourself in a bind.
As you consider buying a second home on Deep Creek Lake, we would love to help answer any questions you may have!  We, here at Coldwell Banker Deep Creek Realty, are passionate about serving the needs of those hoping to buy and sell on Deep Creek Lake.  We’re here whenever you need us and will give you the personal attention that you deserve!
Buying a second home is a big decision and we would enjoy the opportunity to walk with you each step of the way!  
Feel free to contact us today to get started!

Patrick Kane
Sales Manager/Co-Owner
Coldwell Banker Deep Creek Realty
Your Deep Creek Lake Real Estate Expert

No comments:

Post a Comment